A lot of business owners complain that they pay too much for their small business insurance and some may see that their premiums go up each year. Actually, there are many ways that business owners can save on premiums. While every policy is different and built to suit your unique operation, there are some basic areas of exposure that can easily be addressed and can have an impact on premiums. Check out our list of the top 6 things that you can do to improve your standing with insurance companies.
Begin With Your Risk Plan and Loss History
1- Risk management
Understand your business risks and identify sources of potential losses: this is part of risk management. Examples would include: installing an alarm system to avoid theft losses for your store or office. As well, good general property maintenance including debris/wet floor/snow/ice removal in order to avoid slip and fall claims. This is important no matter whether you are a landlord or renting a space. Insurers always offer better rates to those with good house keeping and a good risk management attitude. Check out my previous blog to learn more about commercial general liability.
2- Loss history
A good risk management plan can help prevent certain types of losses. Insurers always review the past claim history when writing a new policy or renewing an existing policy. If a business has had several small claims, he or she will have to pay a higher premium. In this sense, a business owner may want to absorb small losses in order to save for larger claims.
Ensure Small Business Insurance Coverage is in Place
3- Continuous coverage
Make sure that you carry adequate insurance all the time to avoid gaps in coverage. Cancellation for non-payment is the most unfavorable factor that may affect your premium and in the worst situation, you may not be eligible for the needed coverages with some companies.
4- Use of Insured subtrades
If your business needs to use subcontractors, make sure that the subcontractors you use are properly insured and ask them to add you as additional insured on to their liability policies.
Understand the Business of Insurance
5- Bundle your policies
You will be better off to have your business insured through one insurance company. This way, you will likely get a significant discount for your property, liability and auto coverage, etc. under your small business insurance policy.
6- Use a broker
A broker may be the most effective resource you can use to reduce your premiums. Brokers usually deal with a lot of insurers and they usually seek alternate quotes from different companies and thus are able to find best coverage with the most favourable premiums for your business. Talk to our experts today and they’ll be happy to answer your questions and address any concerns you may have about your current policy.
Small business insurance is an industry and a business of its own. You may not have the desire to learn or understand to any deep level. However, with a broker on your side, you can be sure that you are getting every advantage possible when it comes to reducing both your operation’s risk exposure, as well as your level of premium.